The underlying assumption--that active donors are committed and
lapsed donors have changed their minds--is more a product of our own attitudes than a realistic understanding of how people behave.
T must allocate $10,000 of GST exemption to the original transfer, and C must in turn allocate $5,000 of a GST exemption to the
lapsed amount in excess of the 5 & 5 amount.
Since certain regulatory approvals have not been accorded, the closing did not occur by December 31, 2009 and the SPA stands
lapsed in accordance with the terms, MCB Bank said.
He estimated that the
lapsed file could be "a couple million" names.
If those requirements are not met, however, policyholders have the ability to "catch up" and restore the life insurance coverage by paying back premiums with no interest, so long as the policy has not
lapsed and the accumulated cash value is greater than zero.
These messages tend to alienate donors who might not even feel as though they are
lapsed and say to them, in effect, "What you're doing isn't enough." Many of these donors could have already made provisions for your organization in their wills or estates plans--the ultimate gift--and whether or not you're aware of these plans, expect you to treat them accordingly.
The regulation states, "where any portion of a trust remains in the trust after the release, exercise, or lapse of a [general] power of appointment over that portion of the trust...the value of the entire portion of the trust subject to the power that was released, exercised, or
lapsed will be treated as an addition to the trust." (This does not apply to special powers of appointment; see Temp.